Haste Enterprises issues 15-year, $1,000,000 bonds that pay semiannual interest of $50,000. If the effective annual rate of interest is 12%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 15; i = 12% is 6.81086 **PV of $1: n = 15; i = 12% is 0.18270 * PV of ordinary annuity of $1: n = 30; i = 6.0% is 13.76483 **PV of $1: n = 30; i = 6.0% is 0.17411

Multiple Choice

• $1,000,000.

• $929,852.

• $1,688,242.

• $862,352.